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Posted: March 22nd, 2022
Need accounting help to get the total cost for each flavor
Question description
Main Street Ice Cream Company uses a plantwide allocation method to allocate overhead based on direct labor-hours at a rate of $3 per labor-hour. Strawberry and vanilla flavors are produced in Department SV. Chocolate is produced in Department C. Sven manages Department SV and Charlene manages Department C. The product costs (per thousand gallons) follow:StrawberryVanillaChocolate Direct labor (per 1,000 gallons) $750$825 $1,125 Raw materials (per 1,000 gallons)800500600Required:(a)If the number of hours of labor per 1,000 gallons is 50 for strawberry, 55 for vanilla, and 75 for chocolate, compute the total cost of 1,000 gallons of each flavor using plantwide allocation.
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